USD/CAD Drops Toward 2016 Lows
USD/CAD dropped
further during the American session, approaching 2016 lows. The pair
extended the decline below 1.2630 and bottomed at 1.2605, hitting the
lowest level in six days.
The looine is among the top performers
across the board favored by a rally in crude oil prices. The WTI barrel
is up almost 3%, trading near $44.00.
USD/CAD eyes 1.2600
The
pair resumed the decline on the back of a stronger loonie and also amid
a weak US dollar, after a modest recovery. Last week the recovery from
1.2592 (2016 low), found resistance around the 1.2750 area.
On
Friday, the pair turned to the downside and fell initially to 1.2650.
Today it broke to the downside exposing the 1.2600 area. A decline under
1.2590 would put the price at the lowest level since July 2015.
USD/CAD technical levels
To
the downside, support levels might lie at 1.2590/95 (Apr 20 low),
1.2560 (June 1 & 5 high) and 1.2425 (June 24 high / June 5 low). On
the opposite direction, resistance could be seen at 1.2655 (short-term
downtrend line), 1.2755/90 (Apr 22 high) and 1.2850 (Mar 31 low).
